Trump Backs 80 Percent of Crypto Ethics Compromise
The White House has accepted the majority of a new ethical framework to regulate digital assets.
President Donald Trump has agreed to approximately 80 percent of a stringent ethics proposal. This concession occurs as the broader cryptocurrency bill moves toward a critical Senate vote this week. The agreement addresses conflicts of interest surrounding the president's digital asset holdings.
Three key Republican sponsors confirmed the development on Sunday night. The compromise was reached after a pivotal coalition of Democrats and Senator Thom Tillis demanded stronger terms. Their support is required to clear the procedural threshold for Tuesday's scheduled vote. According to GN markets/crypto (en-US), the shift marks a significant departure from earlier White House positions.
State Attorneys Gain Enforcement Power
The revised legislation grants state attorneys general the authority to enforce the rules. They will operate alongside the federal Justice Department. Senator Ruben Gallego and Senator Tillis argued that federal oversight alone was insufficient. This provision allows local prosecutors to pursue legal action against crypto exchanges.
Exchange operators face liability if they trade digital tokens banned by the primary text. The White House previously hesitated to grant local prosecutors such power. Officials feared Democratic state attorneys general might use the authority as a political tool. Republican state attorneys general could also turn the same mechanisms against elected Democrats.
Mandatory Divestiture Requirements Included
The compromise includes a mandate for financial transparency. Officials must divest from or place in a blind trust any significant financial stake. This applies to entities that launch digital currencies. The initial proposal only prohibited federally elected representatives and their spouses from creating or issuing digital assets.
White House Cites Bipartisan Progress
Patrick Witt, the White House crypto adviser, stated that the administration has been responsive to Democratic policy objectives. He noted that more than a year of negotiations has concluded. The goal is to pass this bipartisan bill immediately. A senior Republican staffer confirmed the president endorsed the core elements of the Tillis-Gallego compromise.
